By overpaying you could save
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Is overpaying my mortgage worth it? Overpaying reduces the balance that interest is charged on, so even a small monthly overpayment can save thousands in interest and clear the mortgage years early. For example, overpaying £200 a month on a £200,000 mortgage at 5% over 25 years saves roughly £42,000 and clears it about 6 years sooner. Check your lender's annual overpayment limit first — often 10%.
Overpayment FAQs
Is there a limit on overpayments?
Many fixed-rate deals let you overpay up to 10% of the balance each year without penalty. Above that, early repayment charges may apply — check your mortgage terms.